SSTI Digest

For the second time in three years, the Lilly Endowment is demonstrating its strong commitment to Indiana University's role in life sciences education and research by awarding $50 million to advance the Indiana Genomics Initiative (INGEN).

INGEN was launched in December 2000 with a $105 million grant from the Endowment — the largest grant ever made by the Indianapolis-based philanthropic organization and the largest received by IU. The goal is to propel IU forward as a world-class biomedical research institution and to serve as the foundation for a robust life sciences enterprise.

The Endowment presented the $50 million grant with the stipulation that it be used in areas of greatest need involving INGEN.

Timothy Monger is the new executive director for the Indiana Department of Commerce, Monger replaces Thomas McKenna, who has taken the position as cheif of staff to the Lieutenant Governor.

Many organizations are wondering if, when and how severe their budgets could be impacted by the economy and the continuing fiscal crises in the states. While foundation endowments also have taken a hit by the stock market slump, several are increasing their contributions in building local or statewide technology-based economies. Two recent examples highlight the trend and point toward a funding path few TBED efforts have fully tapped.

Indiana Governor Frank O'Bannon unveiled a plan earlier this week to "Energize Indiana" that relies heavily on tech-based economic development.  Gov. O'Bannon's Energize Indiana plan is a $1.25 billion, 10-year initiative that seeks to create high-skill, high-wage jobs in four industry sectors to which Indiana has a claim – advanced manufacturing, life sciences, information technology and 21st century logistics (high-tech distribution) – and to prepare the state's workforce to fill them.   Of the $1.25 billion, $610 million is directed toward supporting university research, university-industry partnerships, construction of university research facilities, and scholarships in targeted fields.

The National Consortium of Entrepreneurship Centers (NCEC) presented on Tuesday the 2002 NASDAQ Entrepreneurial Excellence Awards to entrepreneurship centers at Babson College, Indiana University-Bloomington, and Saint Louis University.

The award recognizes achievements and efforts of entrepreneurship centers in the following areas: entrepreneurship research, outreach to emerging ventures, entrepreneurship curriculum, community collaborations, special projects, and overall prestige and recognition in the entrepreneurship field. The award honors centers that have made and will continue to make enormous contributions in advancing entrepreneurship as the force in economic growth throughout the world.

Anthony Armstrong returns to the Indiana 21st Century Research and Technology Fund as its new director.

Most technology-based economic development programs recognize the need to have more people in their states or communities who have received bachelor degrees or higher. Bringing low-income populations into a knowledge-based economy is particularly difficult because of the two significant obstacles low-income students face for college access: insufficient financial aid and inadequate academic preparation.

According to a report released last week by the Lumina Foundation for Education, the Twenty-first Century Scholars Program, Indiana's state financial assistance initiative, helps low-income Indiana residents overcome those obstacles. The program also may help address "brain drain" concerns when a state experiences a net outmigration of college graduates.

A massive state budget deficit, partisan squabbles, and a longstanding need to restructure the state's tax code almost derailed Indiana's largest commitment toward building a technology-based economy. An eleventh-hour compromise in the Indiana General Assembly saved the 21st Century Research and Technology Fund from being eliminated, doubled the state's research and development tax credit to 10 percent, repealed an unpopular apportionment formula in the R&D tax credit, and added a venture capital investment tax credit to the state's portfolio as well.

All is not rosy, however. The 21st Century Fund, which supports large-scale research projects at universities and private industry, did take a deep 40 percent cut and will receive only $15 million each year over the biennium. The program also had $50 million in unspent funding rescinded last fiscal year to help balance the state's $1.3 billion budget deficit.

Few private foundations across the country have made a comparable commitment in size or duration toward improving a single state's ability to participate in a knowledge-based economy as the Lilly Foundation has for Indiana. The latest round, reported in this week's online Chronicle of Higher Education, promises a total of $138 million to match donations received by Indiana's accredited colleges and universities. The pledge of $3.5 million to each institution is open to 38 two-year and four-year schools.

The Chronicle reports that to be eligible for the matching donation from the Lilly Foundation, schools must commit to using the raised funds only to strengthen academic programs. Thirty schools were signed on at press time and each had received $150,000 grants from Lilly to seed their fund raising efforts.

Joseph Hornett has been selected to serve as senior vice president and treasurer of the nonprofit Purdue Research Foundation (PRF). Hornett currently is COO for Sport Service, Inc. in Indianapolis. PRF holds more than 130 properties and 10,000 acres of Indiana farmland near Purdue University, including the Purdue Research Park.

The Indiana Technology Partnership named Jim Wheeler as its new president. A former partner with Andersen LLP, Wheeler takes the position vacated by Tom Miller last fall.

Leaders of Central Indiana's top research, academic and economic development organizations announced on Wednesday an effort to develop the region as a world-class center for the life sciences industry. The Central Indiana Life Sciences Initiative — led by the Central Indiana Corporate Partnership (CICP), the City of Indianapolis, Indiana University, Purdue University and the Indiana Health Industry Forum — will seek to increase the number of jobs, businesses, and research opportunities in the life sciences industry in Central Indiana through four goals: